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A bond is a debt investment where an investor loans money to an entity, typically a corporation or government, in exchange for periodic interest payments and the return of the principal amount at maturity. On the other hand, a stock represents ownership in a company and gives the shareholder voting rights and a share in the company's profits through dividends. Bonds are considered a more conservative investment with fixed returns, while stocks are riskier but offer the potential for higher returns.

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8mo ago

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Related Questions

What is a Preferred financial bond?

a bond that uses stock symbol and sells like stock


What is the differences between a stock and a bond?

A stock represents partial ownership in a company. A bond represents a loan to a company.


How does preferred stock differ from common stock?

pay dividend before common stock


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What is a piece of ownership in a company called?

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How is a Stock different from a Bond?

A Bond is like a fixed deposit. It is like a loan agreement between the bond issuer and the buyer. The person who owns a bond only has a debt obligation from the bond issuer. On the other hand Stock means ownership. Every stock owner of a company practically owns a portion of that company.


What do you call a bond that can be changed into a specified number of shares of the issuers common stock?

Such a bond is an convertible bond.


What is the difference between stock market and bond market?

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What is the difference between a bond and a stock?

When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company.


Will an increase in inflation have a larger impact on the price of a bond or preferred stock?

The preferred stock


How is preferred stock like a bond in that it offers a fixed dividend payment to investors?

Preferred stock is similar to a bond in that it provides investors with a fixed dividend payment. Just like a bond pays interest to bondholders, preferred stock pays a set dividend to its shareholders.